< Previous40 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk SUPPORTING BUSINESS GROWTH Business insurance and advisers exist, in part, to protect against the inevitable or the expected. By understanding the threats and pitfalls that could hamstring a business, bosses can prepare in advance and employ countermeasures and protections. 2020 was the year in which we witnessed first-hand what happens when the unforeseen strikes with the unprecedented coronavirus pandemic. Though the initial response from government was stuttering to stay the least, it wasn’t long before financial measures were in place to safeguard businesses and put protections on the economy. One of these most important financial aids is the Coronavirus Business Interruption Loan Scheme (CBILS). Launched back in March, the scheme provides financial support to SMEs across the UK that are losing revenue, and seeing their cashflow disrupted, because of the outbreak. As the pandemic worsened and the financial situation grew bleaker for SMEs, the scheme was expanded, with changes to allowing more smaller businesses to access funding. Although the scheme was originally intended to remain in place until the end of September, Chancellor Rishi Sunak has announced it has been extended to the end of November. Announced by Sunak back in April and opening to applications in May, the ‘Bounce Back Loan Scheme’ is intended to get businesses back up and running and help the economy to, well, bounce back. As with CBILS scheme, it is Growth post-COVID Economic pressures and uncertainty in the wake of the coronavirus crisis have led to companies reviewing their sources of finance, exploring ways to reduce overheads and, of course, exploring the aid on offer to support growth. 40-43.qxp_Layout 1 07/10/2020 10:55 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 41 SUPPORTING BUSINESS GROWTH © Shutterstock /Candyclub delivered by lenders accredited by British Business Bank. The loans, ranging from £2,000 up to twenty-five per cent of the business’ turnover with a maximum loan of £50,000, are intended for small and micro businesses in all sectors. Crucially, it allows businesses to obtain a six-year term loan at a government set interest rate of 2.5 per cent a year with the government covering interest payable in the first year and no principle repayments required for the first twelve months. As with the CBILS scheme, it is in place until the end of November. Another key financial support service offered by the government early into the pandemic was the Coronavirus Job Retention Scheme. The scheme provided a lifeline to businesses who were forced to shut down during lockdown. It allowed the government to pay eighty per cent of furloughed worker’s salaries, up to £2,500, allowing bosses to avoid redundancies. New flexibility was introduced from August with the aim of getting employees back to work and boosting the economy and, back in May, the chancellor announced that the scheme will remain open until the end of October. With some 9.5 million UK workers from 1.2 million employers still on furlough, it’s even likely the scheme will need to be extended beyond this point. Although these schemes may help many of the issues business are currently facing as a direct result of the pandemic, coronavirus has, in many cases, worsened pre-existing issues that businesses were already struggling with. Perhaps the most pressing is late payments. Fortunately, there are ways in which a company can secure funding to cover the gap in cashflow posed by late invoices. Chief among these is invoice finance. This is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. It sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses already rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cashflow issues that arise from late and unpaid invoices – more so since the pandemic. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight 42 Á 40-43.qxp_Layout 1 07/10/2020 10:55 Page 242 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk SUPPORTING BUSINESS GROWTH hours instead of the typical thirty-day period specified on most invoices. Of course, this is far from the only finance solution businesses can draw from. Asset-based finance is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cashflow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy-outs and management but-ins. Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Companies can also take out loans to fill the gap and bolster cashflow, though some companies may already be at their limit with their banks or otherwise don’t meet the requirements for securing loans with traditional lenders. In these situations, companies can turn towards alternative lenders and finance providers. Private equity, for example, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. Although many businesses might be loath to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. Another form of private finance is an angel investor – a high net worth individual who makes use of their own personal disposable finance and makes their own decision about making an investment. Angels would normally take an equity stake in a business in return for providing equity funds. As well as capital, angels can also provide their experience, knowledge and contracts, making them especially attractive to early stage businesses. Every investor is different and will therefore provide differing amounts, but typical investments range from between £10,000 and £500,000, though deals of up to £2 million are becoming more commonplace as angels group together in syndicates. Although angels are one of the most significant investors in start-ups, that shouldn’t deter more established firms from making enquiries. It’s important to keep in mind that securing an angel can be a difficult and protracted process, as well as being harder to research and contact compared with a private equity firm. Although securing finance of one form or another is a way in which companies can strengthen cashflow, there are other options such as reducing overheads and operating costs and downsizing. Depending on the company and, indeed, the severity of the financial shortfall, this approach may be pursed independently or in conjecture with invoice financing or a loan. In this current financial climate, with the effect of the pandemic, and with the end of the furlough scheme forcing many employers’ hands, a lot of businesses may soon be looking at redundancies as a necessary way to © Shutterstock /JomNicha © Shutterstock /bangoland 40-43.qxp_Layout 1 07/10/2020 10:56 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 43 SUPPORTING BUSINESS GROWTH Expert service delivery and customer care from OMS OMS is a nationwide compliance training & consultancy firm based in East Midlands with over 22 years in supporting local and national clients. A multiple award-winning organisation with an unrivalled reputation for excellent service delivery and customer care. OMS has an outstanding portfolio of clients, including Amazon, Molson Coors, BT, Triumph, Qualcomm, Legal & General & AIG, as well as smaller, local SMEs, and has admirable client retention rate and consistently receives exceptional feedback. Its training division is an approved NEBOSH Gold training provider and also accredited to deliver training for IOSH, CITB, IPAF, PASMA, UKATA, CQI-IRCA, City & Guilds and ILM, delivering both public and private courses in Health & Safety, HR, Management, Quality, Environment and First Aid. Its consultancy division provide advice and support for HR, health and safety, ISO 9001, 14001, 22301 and 45001 management systems, and its clients achieve the required certification. Its services are bespoke and are designed to add value to each customer, whilst protecting their brand and reputation, improving their productivity, and reducing their risks. With ongoing positive testimonials and referrals from clients and continued sales growth, OMS have achieved a coveted 5- star Trust Pilot rating. To find out more, visit www.oms.uk.com, or call 01509 833 533. improve and increase their cashflow. Payroll is often the biggest expense for a business so, in times such as these, it’s often one of the first places bosses or financial advisors will look at to save money. It’s a simple but effective method – a company can save tens of thousands of pounds a year by letting staff go, be that through shuttering whole departments, or consolidating multiple job roles into one. Although nobody wants to lose their jobs, it’s often necessary for companies to take such measures to stay afloat and to continuing trading through this period of increased economy strain and uncertainty. However, it’s worth noting that there are other ways to cut payroll costs without letting staff go – such as cutting salaries, turning full-time staff into part-timers, cutting bonuses, enacting leaves of absences and shortening the working week. It isn’t only on the financial side of things the pandemic has affected, but the way in which we work. From the beginning of lockdown in March, offices were largely shuttered with workers either placed on furlough or set up to work from the home. At the time, this might have seemed like a temporary measure, but it’s clear there is a shift taking place and the future of the office is likely to be home-based. Businesses therefore need to invest in the appropriate hardware and software for their home workers to ensure they do not compromise efficiency and that they are perfectly placed not only to weather the future, but to grow as the corporate world continues to evolve. 40-43.qxp_Layout 1 07/10/2020 10:56 Page 444 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PUBLIC RELATIONS Look into my eyes. You are feeling reassured that your brand is about to go stratospheric. You know that by partnering with me and my 2000 Instagram followers after my whistle stop tour of ‘Love Island - The Rivals’, ‘Strictly Essex’ and ‘The Only Way Is Big Brother’ your business is in good hands. Let’s forget about the impending court case, all publicity is good publicity, right? WRONG! As you may have spotted by my ever so SUBTLE tone, I am not a huge fan of reality TV and ‘celeb’ culture. However, many, many, MANY people are, including perhaps your customers and potential customers. So it is easy to see why so many small businesses consider ‘partnering’ with an influencer. Note ‘partnering’ - this is the key. I will come back to this. I have written before on the merits and the potential pitfalls of partnering with megastars. In that example I referenced Saint Federer (my idol) but just imagine if right now, you as head of brand at Acme Ltd, had picked Novak Djokovic...the world number one. He’d be cheaper but…would you want that association? Now, this kind of budget is beyond most of us in SME land so I wanted to discuss an option that is a little more feasible. Influencer Marketing. Leverage You see, today’s marketing is often founded on personality. It is people who are becoming the biggest brands in the world (Kardashians anyone?). With this, the traditional ‘brand ambassadors’ approach to marketing has gradually altered, especially with the rise and rise of social media. We are in the age of The Influencers, many of whom are available to be leveraged by small business owners. It is exciting but where do you even begin? How much do they cost? Where do I find them? Fear not, here is my no- BS guide. Cost Have you seen that bizarre documentary on the Fyre Festival? It is on Netflix and well worth a watch if you want to see how marketing and PR can swiftly unravel. Have a watch and then be even more shocked that Kendall Jenner pocketed about a quarter of a million dollars! For just one post. OMG, as she might emote. I have no clue! The good thing is you don’t need that budget. You may not need anything, if you’re smart. If you are a small business or especially a micro-business just starting out, keep things simple and keep your entry level at zero. Yep, zero. You see, ideally, your ambassadors should already be raving fans who CARE about your product or service. The important part is identifying people to Under the influence - the rise of the instant brand booster By Greg Simpson, founder of Press for Attention PR and Enterprise Nation Champion for Nottingham 44-45.qxp_Layout 1 07/10/2020 10:56 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 45 PUBLIC RELATIONS work with and making it easier for them to talk about your business. This can include giving them free products or experiences and discount codes to share with users. That is the entry level but the fees rise depending on their status; Micro, Macro and Mega. A Kardashian is a Mega influencer and charges mega bucks to reach her audience. Your Macro influencer still has a huge following but typically way under a million, perhaps half of that and will command a fee of anywhere from a few hundred quid to a few thousand. Then you have the Micro influencer and this is where the opportunity really is for smaller businesses. We’re talking about a small following but a very niche one. The ones who are known for something very specific. Ideally, specific to you. Now typically they could be after a small fee but are probably keener on a free gift or partnership. Of course, the transparency of these exchanges is now far greater due to legislation and declaration of interest i.e. ‘I have been paid to do/say this’. Finding them - think ‘authentic’ Guess what? You need to think like your customer and make sure there is a fit. Remember, ideally, they need to be fans of your business already or ‘get it’. Don’t go getting excited about influencers who aren’t in or talking to your target market. If possible, they should conform to your ideal customer persona themselves or have the ability to reach them for you. What you’re really trying to do here is ‘short-cut’ your way to a certain status within a certain market, so make sure your audiences fit. Start by asking your customers what social media ‘influencer’ accounts they follow. Show me the money - how does it all work? Like anything, it depends on their value as much as their time and effort. You might have an informal crew of brand ambassadors who do their thing part time or simply for the love of your brand or they might be getting more involved. You need to understand the potential of the PARTNERSHIP in terms of reach and also whether you will go longer term once the mutual trust is established and you can see the results. You might consider non-compete clauses and what happens if their star should fall. I’m looking at you Novak! The key lesson is do your research. You are looking for an IDEAL partner who can up your game, not a paid face that might take an interest. As ever, think like your customer, who would impress them? Leave your ego and your personal idols out of it. Unless they fit. 44-45.qxp_Layout 1 07/10/2020 10:57 Page 246 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACILITIES MANAGEMENT Ensuring hygiene & efficiency © Shutterstock /Alfa Photo 46-49.qxp_Layout 1 07/10/2020 10:58 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 47 FACILITIES MANAGEMENT Although managing any facility is a complex, multi-faceted job, part of it involves responding to the unique requirements of a facility and meeting regulatory changes. In particular, the latter concerns worker wellbeing and overall site safety, both of which have become much more intricate and pressing since the onset of the coronavirus pandemic. To that end, any facilities manager worth their salt will ensure their facility not only meets the health, hygiene and safety levels required by law but, often, go beyond. One such example includes investing in hygienic flooring. Not only will this instigate and help preserve a safer, more hygienic environment for existing occupiers, but will also serve to entice potential new occupiers to a facility. After all, having high hygiene levels is something worth shouting about and, in during these times, will help to allay anxieties and instil confidence. The best hygienic flooring solutions are stable to steam cleaning, ensuring they fit within an efficient cleaning process that is both swift and robust. Moreover, they’ll be resistant to boiling water and process Worth more than £120 billion, it’s no exaggeration to say that the UK’s facilities management sector is a keystone of the economy. East Midlands Business Link explores what’s involved, the technologies emerging to increase efficiency and the need for hygiene. 48 Á © Shutterstock /Chanelio © Shutterstock /V iacheslav Lopatin 46-49.qxp_Layout 1 07/10/2020 10:58 Page 248 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FACILITIES MANAGEMENT liquids meaning they’re an ideal accompaniment to manufacturing industries such as food, cosmetics and pharmaceuticals. But where all workers within a facility are concerned, hygienic flooring boasts a nominal thickness and anti-slip properties, meaning there’s very little danger of tripping, slipping and falling. Although this helps to minimise accidents and possible fatalities, it by no means eliminates threats entirely. So facilities managers must be vigilant at all times and alert to possible hazards. For this reason, it’s worth taking the time to walk around a facility, looking at what works and where improvements can be made. It would be difficult to trust in a boss who’s never in the workplace, and it’s the same for a facilities manager. How can they be expected to run a tight ship if they never visit the facility they’re supposed to managing? As we’ve already explored, hygiene is critical for facilities managers to focus on, but it can also form part of their environmental strategies. It’ll come as no surprise that cleaning companies and hygiene firms employ some harsh chemicals in their arsenal when tackling industrial buildings, offices and other such facilities. The emphasis here is on speed and efficiency and while this approach typically does keep things spick and span, the use and manufacture of these products can wreak havoc on the environment. Studies are also increasingly finding the impact on human health with the use of harsh chemicals. However, in light of the COVID-19 outbreak, likely cleaning firms will double down on intense chemicals to ensure sight safety. As we learn to live and work alongside the pandemic, however, these cleaning solutions will have to adapt and evolve in order to provide robust and reliable hygiene without compromising the environment at a time when we can scarcely afford it. The same goes for a facility’s grounds. Though the benefit to staff and the environment are admirable, there’s also a pragmatic reason for going green. Being able to market a business centre or office block as sustainable and eco-friendly will give a facility management company an edge over competitors. No doubt new technologies and digital solutions will be on the minds of most facilities managers. Interestingly, one of the ways in which artificial intelligence (AI) is impacting facilities management is with cleaning. Cleaning robots can better and more efficiently maintain a space than their human counterparts – certainly an attractive prospect during the pandemic. Although the initial investment needed to add a robot to one’s operation can be steep, it will more than pay for itself over time, especially considering that a robot doesn’t require breaks and can work around the clock. AI can also mean an end to extended 46-49.qxp_Layout 1 07/10/2020 10:58 Page 3Importance of security in a crisis Webeye, a Mansfield-based security specialist, explores the importance of robust, reliable securing during the coronavirus crisis and what measures businesses can take. Construction sites, empty properties and remote locations are under threat. You need to be confident your assets are safe and, if intruders do break in, you need to know ASAP. Security becomes ever more important in times like these and technology can play its part in keeping everyone involved safe. Governments are encouraging staff to stay at home, but how can you check your business premises are protected and your security provision is working properly or at all? This is where effective alarm delivery is crucial to maintain a credible security programme. If you’re monitoring sites, you need to make sure you can receive alarm notifications directly to your home computer, tablet or mobile device. But by their nature, home devices are not as robust as professional security systems. Webeye has developed a cloud technology that is robust platform and app that have thought through the pitfalls and have put checks and balances in place to make sure you receive credible alarm notifications. You also have to think about guarding and security staff. If you have no physical security staff on site you’ll need effective systems to be your eye-and-ears on the ground. Advances in wireless and battery technology means there are systems on the market such as the Videofied Visual Verification system or Webeye’s own webeyeOCULi that can effectively monitor sites where there is no main power. They trigger upon intrusion and send video clips directly to your home device via the webeyeCMS cloud receiving platform that can act as your automated central monitoring station. To find out more, visit www.webeyecms.com, email sales@webeyecms.com, or call 01157 149990. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 49 FACILITIES MANAGEMENT periods of downtime and losses in productivity due to faulty equipment or machines. Rather than discovering a machine is broken once you need to use it, imagine the time and cost savings involved in being informed exactly when a machine breaks down or begins malfunctioning. This can allow the savvy facilities manager to stay abreast of the situation before it becomes a full-scale problem. A survey conducted by the British Institute of Facilities Management (BIFM) found that over eighty per cent of facilities management professionals believe that building information modelling (or BIM, for short) will support the delivery of facilities management. The Royal Institute of Chartered Surveyors (RICS) define BIM as “people and information working together effectively and efficiently through defined processes and technology”. The vast majority of respondents to the BIFM survey believe that adopting BIM can offer an advantage over those that don’t, with ninety-one per cent saying that facilities managers could benefit from more familiarisation with BIM. Doubtless that in the years to come, more and more facilities managers will do exactly that as the industry moves towards an ever more technologically and digitally supported era, one that also prioritises hygiene to withstand the pandemic. © Shutterstock /24Novembers 46-49.qxp_Layout 1 07/10/2020 10:58 Page 4Next >